European airfares could rise by 10% to 20% next year, according to Ryanair CEO Michael O’Leary, because of higher fuel prices linked to the Iran war. Ryanair has locked in a price of $67 per barrel for 80% of its fuel needs through March 2027, while only 25% of its needs for the following fiscal year are hedged at around $95 per barrel. The airline expects its annual fuel bill to increase by about 2 billion euros, potentially requiring a 20% fare increase, or roughly 10 euros per passenger. Other European carriers are already reducing capacity, which could mean fewer flights and continued fare pressure. O’Leary urged travelers to book early, noting that a 20% increase would turn a 50-euro flight into a 60-euro ticket.
Source: Read the original article
